A UK bid to re-enter the European Union (EU) is “an inevitability”, a Treasury minister has said.
Lord Livermore was at the despatch box when he shared his “personal view” that the UK would rejoin the 27-member bloc.
This month marks a decade since voters chose to leave the EU by 52% to 48%.
Facing Lord Livermore, Lord Mackinlay of Richborough said the Labour Government was “enjoying and using many of the Brexit dividends that were given to them”.
The Conservative former MP continued: “That is zero tariffs on anything it pleases.
“That is using subsidy – not a mechanism I particularly promote – but using subsidy in various places.”
He later added: “The Government is able to do whatever it wishes in whichever field it wishes to promote economic growth.
“And we see that also in the (King’s) Speech, with the potential nationalisation of steel.”
The Government has launched a consultation on suspending tariffs affecting a selection of agricultural goods, including fruits, fruit juices, pasta, couscous, and tuna, in response to the economic impact of conflict in the Middle East.
The Steel Industry (Nationalisation) Bill is making its way through Parliament.
Lord Mackinlay asked Lord Livermore to say whether he “agrees with some of the Cabinet that they would wish to see the UK re-enter the single market and a customs union which would stop most of those economic measures that are currently in the hands of the Government – they would be stopped at a stroke”.
The minister replied: “I think it really does take a Brexit zealot to say that something – you know, cutting tariffs may gain us 0.001% of GDP whereas Brexit itself has cost us, at a minimum, 4% of GDP.
“Estimates now say it ranges from 6% to 8% of GDP.
“So we are seeking to mitigate at the margins the huge damage done to the UK economy by Brexit.
“The idea that is some kind of ‘Brexit benefit’ is absolutely absurd.
“Should we, in due course, re-enter the EU?
“Well, of course, my personal view is that that is an inevitability.”
He went on: “Of course, the UK will at one point re-enter the EU because it’s absolutely in our national economic interest.
“In the meantime, we are doing the European reset and that is incredibly important in helping growth in our economy.”
Labour in its 2024 manifesto vowed to keep the UK outside of the EU, the European single market and the customs union.
“But to seize on the opportunities ahead, we must make Brexit work,” the document read.
“We will reset the relationship and seek to deepen ties with our European friends, neighbours and allies.”
